Stock Market & Financial Investment News

Kohl's price target lowered to $50 from $54 at RW BairdBaird lowered its price target on Kohl's following disappointing Q4 guidance. The firm believes the company's dividend payments, the opportunity for easy comps in the first half of 2013, and share repurchases makes the risk/reward attractive. Shares are Outperform rated.

Kohl's says Nike sales up 24% at Kohl's stores in Q4Kohl's (KSS) says number of transactions increased 2% in Q4. Says Nike (NKE) delivered 24% increase in Q4 sales. Expects about 900 stores to have new beauty format by end of year. Sees some margin pressure in Q1 from rollout of beauty products. Expects SG&A to increase more in Q1 than in the balance of the year. Says FY CapEx guidance includes $350M of IT spending, $250M for store strategies, $200M for base capital projects. Comments made on the Q4 earnings conference call.

Kohl's volatility slightly elevated into Q4 and outlookKohl's March call option implied volatility is at 25, April is at 22, July is at 21; compared to its 26-week average of 22 according to Track Data, suggesting slightly larger near term price movement into the expected release of Q4 results on February 25.